Michigan Home Buyers Appraisals
This is completed when the lender needs to know the value of the home in order to process the home loan. The appraiser will use comparables that are most like the house such as architecture, bedrooms, bathrooms, square footage. In most cases, homes are priced at or around appraised value however there are times when the value is lower than the sale price. When this happens the List Agent should provide comparables to have the appraiser to review and reassess the value. If that approach is rejected by the appraiser then the buyer has the option to bring the difference (appraised value- sale price) to the closing table or renegotiate the sale price (pending that option was written in your Purchase Agreement).
The appraiser will use at least 3 comparables for this type of loan.
The appraiser will use at least 5 comparables for these types of loans.